Second, the project calls for re-routing the Carmel River into San Clemente Creek. The idea is to keep the existing sediment in place that's built up over decades with a structure that's built to state safety standards, officials said.

Since the sediment behind the dam is the main concern to residents living by the river, the re-routing will make the area safer and will allow for increased passage up the creek for the native steelhead trout population, officials said.

Lastly, crews will be removing the dam in various phases.

The San Clemente Dam is owned by California American Water. The water company reached a deal with the California Coastal Conservancy to help them pay for the project. CalAm is paying $49 million and the Conservancy is paying $34 million.

The project will cost both agencies $83 million. It is expected to be completed by 2015.